Curing sick businesses: changing CEOS in turnaround efforts

Implementing Turnaround Strategy: Effect of Change Management and Management Competence factors

“…The ability or "competence" of top managers to affect a firm's strategy depends largely on whether they have the requisite power to be influential (Finkelstein, 1992). The final stage to handle, when changing a CEO particularly in a declining organization, is that of considering the competencies of the incoming CEO (Castrogiovanni et al, 1992). Management competencies in an organization will influence both positively and negatively in relation to implementation of its turnaround strategy.…”

Knowledge management during radical change: applying a process oriented approach

“…A large number of terms describe the changes organisations undergo when faced with extinction, including 'transformation' (47), 'turnaround' (48,49), and 'regeneration' (50). A common feature of renewal is mature organisations (51) going through a survival-threatening decline (52) over a period of time (49).…”

CEOs' power and corporate performance transitions

“…Some of the literature on CEO succession fully attributes revival to the assignment of a new CEO from outside of the organization (Allen, Panian, & Lotz, 1979;James & Soref, 1981;Tushman, Virany, & Romanelli, 1985). Other studies have reported inconclusive results on performance turnaround following CEO change and have pointed out the match between the CEO's capabilities, organizational needs, and severity of performance decline (Castrogiovanni, Baliga, & Kidwell, 1992;Chung, Lubatkin, Rogers, & Owers, 1987).…”

“…A CEO change occurs when the benefits of executive change surpass the cost of the change (Castrogiovanni et al, 1992). In downward performance transitions, the benefits associated with a new CEO may not be perceived to surpass its costs for a length of time; the CEO is retained in his position because of his familiarity with the firm's activities and stakeholders' demands (Virany & Tushman, 1986).…”